diff --git a/awx/main/tasks.py b/awx/main/tasks.py
index 2cdb03f551..55dbc446e9 100644
--- a/awx/main/tasks.py
+++ b/awx/main/tasks.py
@@ -820,7 +820,7 @@ class RunJob(BaseTask):
         elif cloud_cred and cloud_cred.kind == 'rax':
             env['RAX_USERNAME'] = cloud_cred.username
             env['RAX_API_KEY'] = decrypt_field(cloud_cred, 'password')
-            env['CLOUD_VERIFY_SSL'] = str(True)
+            env['CLOUD_VERIFY_SSL'] = str(False)
         elif cloud_cred and cloud_cred.kind == 'gce':
             env['GCE_EMAIL'] = cloud_cred.username
             env['GCE_PROJECT'] = cloud_cred.project
diff --git a/awx/plugins/inventory/rax.py b/awx/plugins/inventory/rax.py
index 4ac6b0f47e..e3dcfa8a59 100755
--- a/awx/plugins/inventory/rax.py
+++ b/awx/plugins/inventory/rax.py
@@ -385,6 +385,10 @@ def parse_args():
 def setup():
     default_creds_file = os.path.expanduser('~/.rackspace_cloud_credentials')
 
+    # pyrax does not honor the environment variable CLOUD_VERIFY_SSL=False, so let's help pyrax
+    if 'CLOUD_VERIFY_SSL' in os.environ:
+        pyrax.set_setting('verify_ssl', os.environ['CLOUD_VERIFY_SSL'])
+
     env = get_config(p, 'rax', 'environment', 'RAX_ENV', None)
     if env:
         pyrax.set_environment(env)